Unfranked Dividend and Capital Gain Raise Questions on Garda’s Distribution Strategy
Garda Property Group has announced a quarterly distribution of AUD 0.02 per security for the period ending September 30, 2025, incorporating a notable non-cash capital gain component from a recent asset sale.
- Quarterly ordinary distribution of AUD 0.02 per security
- Distribution payable on October 15, 2025
- Unfranked dividend with 100% unfranked component
- Includes 11 cents per security non-cash capital gain from Cairns asset sale
- No security holder or court approvals required
Garda Property Group’s Latest Distribution Announcement
Garda Property Group (ASX – GDF) has declared its ordinary quarterly distribution of AUD 0.02 per security for the period ending 30 September 2025. This payment is scheduled for 15 October 2025, with the ex-dividend date set for 29 September and the record date on 30 September. The distribution is unfranked, meaning it carries no Australian franking credits, which is typical for many property trusts.
Capital Gain Component Reflects Recent Asset Sale
Notably, this distribution includes a non-cash capital gain component of 11 cents per security, attributed to the unconditional sale of the Cairns property announced in August 2025. This capital gain is reflected as a tax component in the distribution, enhancing the overall return to securityholders beyond the ordinary income yield. While the distribution itself is 2 cents per security, the tax statement investors will receive will reflect this additional capital gain, which is important for tax planning purposes.
Distribution Structure and Tax Implications
The distribution is fully unfranked, with 100% of the dividend amount classified as unfranked income. Garda Property Group has confirmed there are no arrangements for alternative currency payments or securities plans related to this distribution. Investors should note that the tax components, including the capital gain, will be detailed in the AMIT fund payment notice available through the investor centre prior to payment.
Regulatory and Approval Status
Importantly, the distribution does not require any security holder or court approvals, nor any external regulatory consents such as from the Australian Competition and Consumer Commission or Foreign Investment Review Board. This streamlines the payment process and reflects the routine nature of this quarterly distribution.
Looking Ahead for Investors
With the Cairns sale now complete and its capital gain incorporated into this distribution, investors will be watching closely for how Garda Property Group manages its portfolio and distribution policy going forward. The inclusion of capital gains in distributions can be a situation with both benefits and drawbacks, offering enhanced returns but also introducing tax complexity.
Bottom Line?
Garda’s latest distribution blends steady income with capital gain benefits, setting the stage for investor scrutiny on future asset sales and payout strategies.
Questions in the middle?
- Will Garda Property Group continue to include capital gains in future distributions?
- How will the Cairns sale impact the group’s portfolio and income stability going forward?
- What are the tax implications for investors receiving unfranked distributions with capital gain components?
